Irene Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 4

Multiple Choice

Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,the company estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $820,000.In June,Job 711 was completed.The details of Job 711 are shown below. $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 21,500 \\\hline \text { Direct labor cost } & \$ 10,000 \\\hline \text { Direct labor hours } & 400 \text { hours } \\\hline \text { Units of product produced } & 200 \text { units } \\\hline\end{array}$$ How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)

• A)$157.50
• B)$197.70
• C)$169.70
• D)$219.70

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Definitions:

Hydraulic Circuits

Systems that use fluid under pressure to power machinery and equipment.

Positive Displacement Pumps

Pumps that move a fixed volume of fluid with each cycle, often used in fluid handling applications where a precise volume transfer is needed.

Resistance To Flow

The opposition encountered by a substance as it moves through another substance, often referred to as viscosity in fluids.

Hydraulic Systems

Systems that use fluid pressure to power machines or mechanisms, transforming hydraulic energy into mechanical energy.